Ok guys I need some insight before I go insane ..On my personal  residence I recently did a construction loan for a large addition and had a lot of work done .the contractor has been paid through the bank on five different draws according to what he’s done he’s a small outfit so we’ve been very lenient and the inspector from the bank seem to be as well because he ( contractor) would not always complete the work in the draw outline .

The key additional question is moving forward would they insure the property if the answer is no at purchase 

I would like to buy a single family and rent out the additional rooms. 

No additional cost/premium to tenant.

Additionally (I may be off-base here) but I think another benefit to a fix & flip to me would be the personal experience of rehabbing a home. 

@Shawn Kostoff, I’m reaching out to the city for any additional fees or implications but what else might you have in mind?

One often overlooked but important item as mentioned is finding out about additional junior liens Before making an offer.

I'm exclusively in North Texas.

Any unused passive loss gets carried forward.Let me know if you have any additional questions. 

In addition I suspect many of those homes that are huge negative cash flow are being sold to owner occ.. not for rental purposes. ???